See Also

Bloomberg is reporting that Silver Lake co-founders Glenn Hutchins, David Roux and Jim Davidson are planning to reduce their ownership in the firm they began 13 years ago.

The aim of the move is to not only provide increased incentives for a younger group of deal makers but also to set the stage for an eventual, more permanent transfer of leadership.

The present set of incremental changes are as follows:

Silver Lake, based in Menlo Park, California, will form a five-member managing committee, comprised of Davidson and four younger managing directors, according to one of the people. Roux, the firm’s 55-year-old chairman, and Hutchins co-chief executive officer with Davidson, will play a less active role in day-to-day management, said the people, who asked not to be named because the information is private.

The report correctly notes that Silver Lake will carefully gauge the reaction of their largest investors such as CALPERS.